Labuan, Malta and Belize : evolution of three small offshore banking centres

Abstract

London is not only the principal transaction centre of the Eurocurrency market, but its cultural heart as well. Reflecting London's dominance, the English language, British banking practices and English legal and accounting standards are entrenched throughout it, especially in its more classically offshore centres. Moreover, as 'financial services' generally represent a disproportionately large share of gross domestic product in such centres, the Anglo influence is heightened. Such English-oriented offshore centres in Europe include Jersey, Guernsey (Channel Islands), Gibraltar, Cyprus, the Isle of Man and, of course, Malta. In Asia, such centres include Hong Kong, Singapore, Vanuatu (formerly the New Hebrides) and one subject of this study, namely Labuan, a federal district of Malaysia. Finally, in North America, such centres include Cayman, Nassau (Bahamas), Barbados, Antigua, the British Virgin Islands, Anguilla, the Turks and Caicos, Panama (via its US link) and, of course, Belize (previously British Honduras). This study will focus on offshore banking in Labuan, Malta and Belize- geographically and ethnically dispersed, but with an overlapping business culture.